AUDJPY is still good for shorts for the second week in a row. Last week in the members area I highlighted AJ for a short and the picture at the time looked like this:
If you look at the charts now, you'll see that price dropped over 100 pips before reversing. The setup was ideal. Clear path on the daily and the 30m with 5m engulf confirmation. That's all you need to see.
Shortly after the market opened this week, we saw another supply level form indicating a short. The path was still clear on the daily and on the H1/30m so that's another short trade for AJ.
Another decent profit on AJ. You may notice that price came right up to the distal line of the supply for the second trade and yes it was was close to my stop loss. It never triggered so I ended with profit. My stop is always a few pips above the distal line for that very reason.
The question now is, will it go down some more? I think it probably will but my rules with this particular strategy say to exit after a 5m engulf from a H1/30m demand and so I have. If I see another entry signal to go short whilst there is still profit potential then I may short AJ again. Time will tell.
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AN reached daily demand last week and is making a move up. There was a nice drop with pure red candles so profit potential looks good. I'll be watching for signals on the lower time frames. The only potential issue with this one for me is how deep price traded into the level. However if there is decent confirmation I would probably still go long.
Price is heading up to supply so this is one to watch. The approach so far looks good and if it continues then we'l be looking for reversals.
Members can click here for the detailed analysis which looks at the lower time frame levels we are watching to confirm entries.